No longer current — withdrawn, no replacement on file yet
Source: Reserve Bank of India · RBI/2012-13/534 · issued 17 Jun 2013 · ~1 min read
Quick answerRBI has extended the May 2013 prudential guidelines on restructuring of advances to All-India Term-Lending and Refinancing Institutions (Exim Bank, NABARD, NHB, SIDBI), with exceptions for products they don't offer like working capital and personal loans.
The rule, in the simplest words
RBI (India's central bank) says FIs (special banks like NABARD, SIDBI, etc.) must follow the same rules as regular banks when they change loan terms to help a borrower who can't pay.
These rules do NOT apply to working capital (money for daily business costs), overdrafts (extra borrowing from an account), or personal loans, because FIs don't give those types of loans.
FIs must update their own internal rules and train their staff to match the new restructuring guidelines from May 30, 2013.
How it plays out — a real example
A loan officer at NABARD in Mumbai reviews a farmer's loan that needs easier repayment terms. She checks the new RBI guidelines from June 17, 2013, and follows the same restructuring rules as a commercial bank would, but skips the parts about working capital and personal loans since NABARD doesn't offer those. She then updates her team's checklist to make sure every restructured loan is handled consistently.
What changed
RBI issued a circular on June 17, 2013, applying the May 30, 2013 prudential guidelines on restructuring of advances to FIs. The guidelines apply mutatis mutandis, but provisions related to working capital, overdrafts, and personal loans are excluded since FIs don't typically offer these products.
What it means for you
FIs must now follow the same restructuring norms as scheduled commercial banks, ensuring consistency in asset classification and provisioning. This levels the playing field but requires FIs to adapt their internal policies to the new framework, excluding only the inapplicable product categories.
Historical instruction — do not use for current compliance. This is what was required at the time; it no longer reflects current RBI requirements. If no replacement rule is linked above, that only means none is recorded on our register yet — it does not prove no later applicable rule exists. Confirm on the official RBI source below.
What banks were required to do at the time
Review and align your restructuring policies with the May 30, 2013 circular and June 6, 2013 clarification.
Exclude provisions related to working capital, overdrafts, and personal loans from your implementation.
Train staff on the updated prudential guidelines for restructuring advances.
Update internal compliance checklists to reflect the new requirements.
Who it affects
All-India Term-Lending and Refinancing Institutions (Exim Bank, NABARD, NHB, SIDBI)
❓ Common questions
Regulatory timeline
Decoded by BankPulse2026-06-18 15:15 IST
Status change: withdrawn11 Jul 2026, 02:13 IST
Built from our lineage records — each fact carries its provenance; missing history simply is not shown (never guessed).
Do these guidelines apply to all products offered by FIs?
No, provisions related to working capital, overdrafts, and personal loans are excluded because FIs generally do not extend such facilities.
What is the effective date of these guidelines?
The circular was issued on June 17, 2013, and the underlying bank guidelines were dated May 30, 2013, with a clarification on June 6, 2013.
Which FIs are covered by this circular?
The circular is addressed to Exim Bank, NABARD, NHB, and SIDBI.
📜 Read the original circular — full text as issued by RBI
RBI/2012-13/534
DBOD.FID.FIC.No.5/01.02.00 /2012-13
June 17, 2013
The CEOs of All-India Term-Lending and Refinancing Institutions
(Exim Bank, NABARD, NHB and SIDBI)
Dear Sir,
Review of Prudential Guidelines on Restructuring of Advances
by Financial Institutions (FIs)
In continuation of our letter DBOD.FID.FIC.No.6/01.02.00/2010-11 dated October 14, 2010 on the captioned subject, please find enclosed circular DBOD.BP.BC.No.99/ 21.04.132/2012-13 dated May 30, 2013 and the Mail Box Clarification dated June 6, 2013 on 'Review of Prudential Guidelines on Restructuring of Advances by Banks and Financial Institutions' issued to scheduled commercial banks. In this connection, it is advised that these guidelines, shall apply mutatis mutandis to the FIs.
2. However, certain activities are generally not undertaken by FIs, such as extending working capital, overdrafts and personal loans, etc. The provisions of the circular relating to such activities shall not be applicable to the FIs.
Yours faithfully,
(Rajesh Verma)
Chief General Manager
Reproduced for reference with acknowledgment — Source: Reserve Bank of India · RBI/2012-13/534 · issued 17 Jun 2013. The plain-English explanation above is BankPulse’s own independent summary.
Discuss this circular with fellow bankers — reply, upvote what helps, report what doesn’t belong. Be professional; no client data. Views are the commenter’s own, not BankPulse’s.
BankPulse Compliance Evidence Pack — generated 03 Aug 2026 · status cross-checked against RBI’s official withdrawal register (refreshed weekly). Official RBI source: https://www.rbi.org.in/Scripts/NotificationUser.aspx?Id=8037&Mode=0 — Plain-English summary by BankPulse (bankpulse.ai), reviewed by our expert reviewer, CA Amit Jain. Independent platform, not affiliated with the Reserve Bank of India; is our own plain-English paraphrase, not RBI’s original wording.
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